Qantas confirms warning to government

Aviation company Qantas has said it has contacted federal and state government to warn of consequences for its business if rival Virgin Australia is able to complete a $350 million capital raising from foreign shareholders.

Last week Virgin Australia announced it would raise $350 million from three state-owned airlines – Air New Zealand, Singapore Airlines and Etihad Airways. The capital raising would increase the total ownership of Virgin by the trio to 72 per cent, from 63 per cent.

“The decision of these shareholders to invest in Virgin Australia’s loss-making strategy highlights that these airlines aren’t subject to the same commercial realities as Qantas," the airline said.